Belize: Guide to Buying Costs and Procedures

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Buying costs are moderate in Belize

How high are realtors’ and lawyers’ fees in Belize? What about other property purchase costs?

How difficult is the property purchase process in Belize?

There are no restrictions on foreign ownership of property.

The first step to purchasing property in Belize is to hire an agent and a lawyer. It is very important to have legal representation because there is no regulation on the real estate industry in Belize. Agents are not required to have any certification or license. Moreover, real estate agents in Belize are not required by law to disclose valuable information about the property.

Be aware of “Deed Restrictions”. These are intrinsic to the property title, which means, while there are no restrictions mandated by law, there are restrictions that go with the property owner’s rights and obligations. These restrictions outline how the property can be used. The lawyer can be helpful in making sure the “Deed Restrictions” of a title are legal. Also, it is important to ascertain the property’s zoning. This specifies how high the dwelling/building must be, how many rooms it can contain, etc.

Once a property has been chosen, negotiate. Upon reaching an agreement, a 10% deposit must be paid, which takes the property off the market. It is the duty of the lawyer to ensure that a title for the property actually exists since there are unregistered properties in Belize.

The lawyer is responsible for performing due diligence. It is typical for the buyer and seller to have separate lawyers.

If the property is clear of any charges, proceed with the transaction. The seller will submit his title documents to his lawyer who will draft a new title in your name. Upon receipt of the new title, the lawyer will transfer the outstanding balance, which he will have already asked the buyer to pay to his escrow account, to the seller. He will then submit Transfer of Land forms to the Department of Lands and Surveys in Belmopan, where stamp duty of 15% will be payable (Belizean nationals pay only 5% for stamp duty). The new Land Certificate, in your name, should arrive within three weeks.

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Currency:
Belize uses the Belize Dollar (BZD) which is pegged to the US Dollar at USD at USD1 = BZD2. Property value is USD250,000 or BZD500,000.

Stamp Duty:
Since June 2006, Stamp Duty on transfer of land (or any real estate) has been set at 5% of property value regardless of citizenship. Before, aliens pay a higher rate for stamp duty. The first BZD20,000 of value is not subject to stamp duty.

Legal Fees:
The use of lawyers for property sale and purchase is optional. Legal fees are negotiable bwtween 1% and 2% of property value.

General Sales Tax:
A 10% General Sales Tax is imposed on sales of new residential properties.

Real Estate Agent's Commission:
Real estate agent's commission is typically 7% of purchase price for homes and 10% on land. The commission is typically paid by the seller but can be split between buyer and seller depending upon negotiation.

Belize - more data and information

• How landlord-friendly is the law in Belize?

Your Comments

posted by Mr. Lon Wright Sr. | 2008-05-06

Broker/Owner Belize Caye Property.Com, Caye Caulker, Belize C.A.

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